What changes
Foreign nationals who leave Japan after at least six months of contributions, without qualifying for a pension, can claim a lump-sum withdrawal payment. It is currently calculated on up to 60 months, or five years, of contributions. The 2025 pension reform law (Act No. 74 of 2025, promulgated 20 June 2025) raises the cap to 96 months, or eight years, reflecting the longer stays now possible under the new Employment for Skill Development system followed by Specified Skilled Worker status.
The same law closes a gap: people who leave on a valid re-entry permit will not be able to claim until the permit expires without their return. This stops people wiping their pension record during a temporary trip home.
Both changes take effect on a date set by cabinet order within four years of promulgation, so by June 2029 at the latest. As of 4 October 2026 no date had been set, and the Japan Pension Service still applies the five-year cap.
Who it applies to
Non-Japanese employees of any employer in Japan who leave before reaching the ten years needed for a pension. It matters most for staff from countries without a totalisation agreement with Japan.
Action for employers
- Do not promise the new cap yet. Until the cabinet order is made, anyone leaving gets at most five years refunded. Check the date before advising a leaver.
- Update exit briefings. Tell departing foreign staff about the claim, the two-year deadline and, once in force, the re-entry permit rule.
- Explain the trade-off. A refund cancels the refunded months for any future Japanese pension or totalisation credit; for staff from agreement countries, keeping the record may be worth more.
- Watch for the date. Diarise a check for the cabinet order; secondees planning to leave around 2028 to 2029 may gain by timing.
Sources
- Act Partially Amending the National Pension Act and Related Acts (Act No. 74 of 2025), revision of the lump-sum withdrawal payment.
- Ministry of Health, Labour and Welfare, explanatory materials on the 2025 pension reform law (implementation dates).
- Japan Pension Service, guidance on the lump-sum withdrawal payment system.